As per MRFR analysis, the India Automotive Industry Market Size was estimated at 118.92 (USD Billion) in 2024. The India Automotive Industry Market Industry is expected to grow from 129.39 (USD Billion) in 2025 to 276.46 (USD Billion) till 2034, at a CAGR (growth rate) is expected to be around 8.80% during the forecast period (2025 - 2034). Market drivers contributing to the market's expansion include the expanding middle class, technological advancements in the automotive sector, and government programs and laws that facilitate the establishment of the automotive sector.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In India, the automobile industry contributes 7.1% of the country's GDP and 49% of the manufacturing GDP. As a result, India's car industry plays a big role in both macroeconomic expansion and technological improvement. Therefore, the government's main goal is to increase the automobile industry's share by enacting new laws and programs. The Indian government anticipates that 8–10 billion USD in local and foreign investment will reach the automotive sector by 2023. For instance, as part of a larger series of nation-building initiatives, the Prime Minister unveiled the Made in India program in 2014.
The goal of Make in India was to turn India into a powerhouse for global design and manufacturing in response to a critical situation. In order to meet the growing demand for automobile production in the nation, numerous manufacturers are investing in both new and existing plants. Furthermore, the Indian government unveiled a new car scrappage strategy in 2021, with the main goal being to locate and remove unsafe cars from the road. This reduces the amount of greenhouse gases that the older cars emit and makes room for the new car that complies with BS6 (Bharat Stage 6 - equivalent to Euro6) emission standards. This will boost the market CAGR.
Around 300,000 electric cars were sold in India in 2021—a 168% increase over the 100,000 units sold the year before. Sales of passenger EVs in India tripled to approximately 15,000 units in 2021, and they are still exhibiting growth.In response to increasing urbanization, the Indian government has launched various programs to encourage the production and use of electric vehicles domestically. The goal is to lower emissions and advance e-mobility.The Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME I and II) and the National Electric Mobility Mission Plan (NEMMP) also contributed to generating the early interest in and exposure to electric mobility.
Furthermore, to support the indigenous electric vehicle industry, the Indian government has also given tax breaks and subsidies to EV producers and users. The government has put a 15% customs tariff on parts used to make electric vehicles and a 10% duty on imported lithium-ion cells in accordance with the phased production proposal. Additionally, manufacturers are investing in the development of new technologies and electric infrastructure in addition to increasing its production capacity to meet the demand brought about by the rising sales of electric vehicles in India. Thus, driving the Market revenue.
The market segmentation, based on vehicle type includes Two-Wheelers, Passenger Cars, Commercial Vehicles and Three-wheelers. The three-wheelers segment dominated the market mostly. Short-distance transportation is frequently provided by three-wheelers. Since three-wheelers offer inexpensive short-distance passenger transportation, the market benefits from Indian consumers' great price sensitivity. Because of the country's expanding population, which sustains transportation need, the demand is anticipated to be constant over time.
The India Automotive Industry market segmentation, based on fuel type, includes Diesel, Petrol/Gasoline, CNG and LPG, Electric and Others. The electric category generated the most income. A number of factors, such as government incentives, increased environmental awareness, and technological breakthroughs, are contributing to the boom in demand for electric vehicles that the Indian automotive sector is experiencing. Government rules and incentives have played a significant role in driving the adoption of EVs in India.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India is a globally recognized center for automobile manufacture due to its affordable output. The manufacturing sector is driven by cheap labor costs, easy access to and low cost raw materials, and a weak currency. With an average yearly production of about 4 million motor cars, India ranks as the fourth largest producer of automobiles worldwide. The growing middle class and younger population in India are also expected to contribute significantly to the country's automobile market's projected rapid expansion. Additionally, exports from the nation have increased significantly as a result of the growing demand for autos. Indian car exports increased from 291,170 units in April to December 2021 to 424,037 units in December 2021. Furthermore, the market is anticipated to see increased demand for commercial vehicles from the expanding passenger and logistical sectors. Policies and initiatives from the government have a significant impact on market growth and are predicted to continue doing so in the years to come.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the India Automotive Industry Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automotive industry industry must offer cost-effective items.
In July 2024, Tata Elxsi, a prominent multinational corporation specializing in design and technology services, and Emerson, a worldwide leader in automation, collaboratively opened the Tata Elxsi + NI Mobility Innovation Centre (TENMIC) in Bengaluru. This state-of-the-art facility is dedicated to expediting automotive innovation by utilizing modern technology, software solutions, and worldwide knowledge. The launch event was attended by senior technology and R&D professionals from global OEMs, automotive suppliers, and semiconductor businesses. The event was sponsored by top executives from both companies. This emphasizes the importance of TENMIC and the partnership between Tata Elxsi and NI in improving automotive development and fostering innovation.
In June 2024, DAEWOO introduced its state-of-the-art automotive batteries designed for use in automobiles, trucks, tractors, and buses. DAEWOO's vehicle batteries utilize cutting-edge technology to ensure maximum performance. The product is built with a strong and sturdy structure to improve its durability and lifespan. It also features increased vibration resistance, making it suited for rough terrains. Additionally, it has a maintenance-free design, ensuring that owning it is hassle-free. DAEWOO offers automobile four-wheeler batteries with a comprehensive warranty, ensuring customer pleasure and demonstrating the company's dedication to quality.
Stellantis bought PSA Group in Europe for $52 billion in January 2023 and sponsored its operations by buying the second-largest automotive company in Europe. Stellantis is a global leader in automotive - designed, engineered, manufactured and sold vehicles, their parts and production systems.
Qualcomm acquired a software brand focused on policy-driven sensor perception in March 2023 for $4.5 billion. Qualcomm is an American multinational corporation that manufactures and sells wireless telecom products and digital services.
In April 2023, Amazon purchased the self-driving vehicle manufacturer and seller Zoox for USD 1.2 billion. Zoox has designed an autonomous vehicle from the ground up with the aim of offering a mobility-as-a-service solution.
In June 2023, Mercedes-Benz India launched in the country the 7th Generation Mercedes-AMG SL 55 priced at Rs 2.35 crore (ex-showroom). Competing with the open-top sports car, Porsche 911 Carrera S Cabriolet, which retails at Rs 2.18 crore, this open-top supercar features a 4-liter bi-turbo V8 engine that offers 476bhp.
In June 2023, MG Motor India entered into a collaboration with Jio platforms to integrate a range of connected car functionalities in their vehicles. The integration will also bring Hinglish voice assistant features powered by Jio onboard MG’s new Comet EV. The system consists of integrated music payment apps, access to other connectivity platforms and necessary hardware. This MGI-Jio partnership intends to provide safety and technology-advanced car experiences to Gen Z customers.
In February 2023 - Lumax Auto Technologies Ltd (LATL), which is in the business of making automotive parts, signed a deal with The International Automotive Components Group (IAC), which is a supplier of automotive parts and systems. The agreement states that LATL will gain controlling interest in IAC International Automotive India. This will help LATL grow its customer base outside of two- and triple-wheeler businesses and into passenger and commercial vehicles. IAC India is an important supplier for Mahindra & Mahindra, Maruti Suzuki India and Volkswagen India.
January 2024: The Maruti Suzuki India Company planned to invest roughly INR 35,000 crore (USD 4.2 billion) into building a plant in Gujarat, India, that would be able to produce a million vehicles every year. This development is likely to advance the Indian automobile sector considerably.
In February 2024, TVS Group’s TVS Mobility agreed to a joint venture with the leading Japanese company, Mitsubishi Corporation. The Japanese company invested INR 300 crore in a newly formed company, TVS Vehicles Mobility Solutions and earned a 32% share in the company.
| Report Attribute/Metric | Details |
| Market Size 2024 | 118.92 (USD Billion) |
| Market Size 2025 | 129.39 (USD Billion) |
| Market Size 2034 | 276.46 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 8.80% (2025 - 2034) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2034 |
| Historical Data | 2019 - 2023 |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Vehicle Type, Fuel Type, and Region |
| Countries Covered | India |
| Key Companies Profiled | TVS Motor Company, Hero Moto Corp., Honda Motorcycle & Scooter India Pvt. Ltd., Royal Enfield, Bajaj Auto Corp., Suzuki Motorcycle India Private Limited, Tata Motors Limited (includes Tata and Jaguar), Hyundai Motor India Ltd, Mahindra & Mahindra Limited, MG Motor India Pvt. Ltd , BMW AG (includes BMW and MINI), Mercedes-Benz India Pvt Ltd, Lohia Auto Industries, Piaggio & C. SpA, Scooters India Ltd., Atul Auto Limited, Terra Motors India Corp |
| Key Market Opportunities | Growing government support for policies Global leaders are investing more in the production of automobiles in India |
| Key Market Dynamics | Growing demand for electric vehicles Rising numbers of middle-class people |
India Automotive Industry Market Highlights:
Frequently Asked Questions (FAQ) :
The India Automotive Industry market size was valued at USD 118.92 Billion in 2024.
The market is projected to grow at a CAGR of 8.80% during the forecast period, 2025-2034.
The key players in the market are TVS Motor Company, Hero Moto Corp., Honda Motorcycle & Scooter India Pvt. Ltd., Royal Enfield, Bajaj Auto Corp., Suzuki Motorcycle India Private Limited, Tata Motors Limited (includes Tata and Jaguar), Hyundai Motor India Ltd, Mahindra & Mahindra Limited, MG Motor India Pvt. Ltd , BMW AG (includes BMW and MINI), Mercedes-Benz India Pvt Ltd, Lohia Auto Industries, Piaggio & C. SpA, Scooters India Ltd., Atul Auto Limited, Terra Motors India Corp.
The three-wheelers category dominated the market in 2022.
The electric category had the largest share in the market.
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Chief Strategy Officer Indu tyagi ketan cso and one of our esteemed authors at market research future, is a biomedical engineer with a specialization in neurophysiology. her forte is in forecasting advancements & investments in new technologies. she has played a vital role in designing strategies & roadmaps for many organizations. indu is a strategy & marketing leader with a demonstrated history of working in industry & market research/consulting.
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